Ridden with inaccuracies, half truths, and plain old news.
Posts tagged savings
40% of Britons Unable To Save
Sep 17th
A recent survey has shown that almost half of Britons are unable to save. Only 60 percent of those asked managed to put money into their savings account each month, saving on average £206. Back in January 34% said that they were unable to save. Of those who were able to top up their savings 65% used instant access savings accounts.
Another survey back in July found that a quarter of people had no savings put aside at all. With unemployment still rising those who are not saving must be concerned about what will happen if the are made redundant. We are lucky enough in this country to have support systems in place for those out of work but it is still not a good time to be job hunting.
Those unable to save should console themselves with the fact that ISA interest rates have hit an all time low. Its great to have saving to fall back on but those savings wont be growing by much until the economy recovers.
10 Recession Beating Holiday Tips.
May 15th
Here are 10 useful tips for keeping the cost of your annual holiday down. There is no point having an expensive holiday and having to worry even more about money when you get back! Saving a bit of money doesn’t necessarily mean making huge compromises (don’t worry I won’t be recommending a trip to Milton Keynes) just a bit of forward planning.
1. Book Early. I know this is a bit of an obvious one but it is worth repeating. Train travel, hotel rooms, car rental and Flights are often cheaper if you book as far in advance as possible.
2. How about staying with friends or taking part in a house swap? Just make sure you organize it well so you don’t end up returning home to find people in your house who expect to stay another night (true story!) [Guardian Home Exchange]
3. Buy your holiday from ebay. I had no idea but apparently people sell holidays they can no longer take via online auctions. This might be a bit of a last minute technique but look on the positive side, you benefit from someone else’s misfortune! [ebay.co.uk travel section]
4. Avoid paying ridiculous ATM fees Phone your bank before you go and find out the best way to reduce cost before you get there!
5. A Camping Barn is a minimally furnished self catering alternative to caravanning and camping. The cost from as little as £7 per person per night and are great for large families. [campingbarn.com]
6. Complain. If your holiday is not up to scratch or your airline sells your seat to someone else then you could get compensation. Sometimes it is necessary to hire someone else to chase a refund but the main thing is not to give up after one reply!
7. look online for discount voucher codes. For example enter FLIPFLOPS as a pro code on the easycar.com site for a summer discount. [vouchercodes.co.uk]
8. Avoid paying ridiculous mobile phone fees. Phone your operator before you go and find out the best way to reduce cost before you get there!
9. Compare prices online to make sure you’re not paying over the odds for your flight or hotel room. [travelsupermarket.com]
10. For those who don’t work hard enough outside of holiday time (how many people work in your office? About half of them, arf arf!) how about a working holiday. [workingholidayinfo.com]
Where is best for your savings?
Mar 19th
Savings rates have hit a record low, in January notice accounts (simply accounts which require notice before withdrawals) paid an average of just 0.29%. Instant access accounts, for instance instant access ISAs, were also at an all time low. The fifth interest rate cut since October occurred on the 5th of February, bringing the rate down to just 1% . All this has lead to worries that consumers will be dissuaded from putting their money in savings accounts. This would only exacerbate the bank’s problems as they will have less to lend.
There are of course other factors involved. The massive amount of job losses that have occurred so far this year will have an impact. While some will be forced to live off their savings, others will see this as a possibility and attempt to save more incase they have to rely on their investments in the future.
Some will choose this as a good time to invest in property. The cut in interest rates makes mortgages a more viable option and it is hoped that this will kick start the stalled property market back into life. Rental prices have been increasing in most areas for the past few years to the point where monthly mortgage payments are often lower than rental prices. Those who have enough money for a deposit will be tempted by low rate first time buyer mortgages in the coming year.
The recession is forcing us to become more aware of the financial situation both nationaly and in terms of our own accounts. With daily updates about the status of various courporate banks on the news each evening it is hard
Brits Favouring Pensions Over Savings Accounts.
Mar 3rd
Reductions in interest rates and increasing economic pressures have left many Brits unable or unwilling to add to their savings account. As the cost of food remains high and many salaries are frozen or cut many of use are not using our accounts as we once were.
The Financial Times reports that many seem to be favouring their pensions over savings accounts. If interest rates get much lower this may become more common.
“With the base rate at an all time low and the recent disclosure by the Bank of England that returns have dropped to an average of 0.29 per cent on some savings accounts, it is not surprising people have started to question why they are bothering.”
Martin Palmer, Friends Provident.
Sharon Bratley of fairinvestment.co.uk says that raiding savings accounts should be a last resort. With a third of Brits expecting their disposable income to reduce within the next few months it may become a reality for more of us.
Some banks are suggesting that it is now a good time to switch and save in order to make the most of savings. Their are various offers available to those looking to switch current account. It is worth remembering that you have little to gain by being loyal to once particular bank, and many are choosing to go wherever the best deal is.
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